Some Advices From 5 Bank Managers

[mdemircan2]

Hi David,
I played Capitalizm Lab Banking DLC ​​with 5 bank managers. They liked the Banking DLC, but saw some shortcomings; I wrote below:
A- The types of loans to be given by the bank should be diversified;
for example: 1-home loan, 2-commercial building loan, 3-educational loan,
4-Credit to companies: The bank should be able to adjust the percentage loan that is given to sectors.
For example 15% for Home accessories, 20% for textile, and 65% of the total deposit for the automotive sector.

B-There must be Sectoral Concentration:
The bank should distribute the loans to be given according to a certain percentage according to the loan types.
For example, 10% of the loans to be given by the bank as housing loans, 5% as education loans, 25% as commercial building loans,
It should be able to plan to give 5% of the loan to companies in the automotive sector.

C- The income sources of the bank should be diversified.
Currently, the bank only has income from interest.
example of income of the bank: interest income, income from banking transactions: EFT, account management fee etc...

D-Following the equivalence of the maturity of the deposits collected by the bank and the maturity of the loans to be given as a performance indicator.
For example,Does the bank use the deposit that has been collected with 1-year maturity to give a 1-year matured loan?
Or does it uses the deposit that has been collected with 1-year maturity to give a 3-year matured loan?
That's a significant issue.

[paulwoman]

If you want, you can do a poll inside this https://www.capitalism2.com/forum/viewforum.php?f=14

[Arcnor]

Hi David,
I played Capitalizm Lab Banking DLC ​​with 5 bank managers. They liked the Banking DLC, but saw some shortcomings; I wrote below:
A- The types of loans to be given by the bank should be diversified;
for example: 1-home loan, 2-commercial building loan, 3-educational loan,
4-Credit to companies: The bank should be able to adjust the percentage loan that is given to sectors.
For example 15% for Home accessories, 20% for textile, and 65% of the total deposit for the automotive sector.

B-There must be Sectoral Concentration:
The bank should distribute the loans to be given according to a certain percentage according to the loan types.
For example, 10% of the loans to be given by the bank as housing loans, 5% as education loans, 25% as commercial building loans,
It should be able to plan to give 5% of the loan to companies in the automotive sector.

C- The income sources of the bank should be diversified.
Currently, the bank only has income from interest.
example of income of the bank: interest income, income from banking transactions: EFT, account management fee etc...

D-Following the equivalence of the maturity of the deposits collected by the bank and the maturity of the loans to be given as a performance indicator.
For example,Does the bank use the deposit that has been collected with 1-year maturity to give a 1-year matured loan?
Or does it uses the deposit that has been collected with 1-year maturity to give a 3-year matured loan?
That's a significant issue.

I agree with these

[Kristo]

Hi,

well the 5 bank managers are right. I think banks should offer more products in-game, as they do in real life. They can set slider for different types of products to put money in:
- car loans
- home loans a.k.a mortgages
- usual small-level loan
- startup company loans
- corporate loans
- high-earning individuals loan (like for your avatar in-game)
- investment in bonds
- investment in corporate shares
- debit-card service (bank will charge small amount of $ for providing common people with financial services like this one)
- investment in 1 or more Credit Card Companies

// Few months ago, i wrote an answer about the CCC and explain in some detail how such companies may work in the game, here's the link - https://www.capitalism2.com/forum/viewt ... 570#p30570
It can be useful to add such companies and make them available for bank to either create their own one to run within the bank, or to invest and eventually take control of such companies.

Now, anyway, all the products above can have sliders between 0-100%, with the underlined one as exception - to be at least 5% of the bank's portfolio. The sliders should be linked to one another, and also be related to a major slider called "how much % of the annual profit to be invested in our products". In a normal game, 5% should be payed as dividents to shareholders, another 5% will be put to reserve, then another 5% for upkeep of buildings, taxes, fees, and the reminding 85% sent back to be invested in products (for example: 5% car loans, 10% mortgages, 40% small-level, 20% corporate, 10% debit-cards, 5% startups, and the rest - 10% on bonds)

[mdemircan2]

Absolutely I agree

[mdemircan2]

Hi,

well the 5 bank managers are right. I think banks should offer more products in-game, as they do in real life. They can set slider for different types of products to put money in:
- car loans
- home loans a.k.a mortgages
- usual small-level loan
- startup company loans
- corporate loans
- high-earning individuals loan (like for your avatar in-game)
- investment in bonds
- investment in corporate shares
- debit-card service (bank will charge small amount of $ for providing common people with financial services like this one)
- investment in 1 or more Credit Card Companies

// Few months ago, i wrote an answer about the CCC and explain in some detail how such companies may work in the game, here's the link - https://www.capitalism2.com/forum/viewt ... 570#p30570
It can be useful to add such companies and make them available for bank to either create their own one to run within the bank, or to invest and eventually take control of such companies.

Now, anyway, all the products above can have sliders between 0-100%, with the underlined one as exception - to be at least 5% of the bank's portfolio. The sliders should be linked to one another, and also be related to a major slider called "how much % of the annual profit to be invested in our products". In a normal game, 5% should be payed as dividents to shareholders, another 5% will be put to reserve, then another 5% for upkeep of buildings, taxes, fees, and the reminding 85% sent back to be invested in products (for example: 5% car loans, 10% mortgages, 40% small-level, 20% corporate, 10% debit-cards, 5% startups, and the rest - 10% on bonds)

Absolutely I agree

[ryamamoton]

mdemircan2 wrote: ↑Thu Sep 02, 2021 4:03 pm
Hi David,
I played Capitalizm Lab Banking DLC ​​with 5 bank managers. They liked the Banking DLC, but saw some shortcomings; I wrote below:
A- The types of loans to be given by the bank should be diversified;
for example: 1-home loan, 2-commercial building loan, 3-educational loan,
4-Credit to companies: The bank should be able to adjust the percentage loan that is given to sectors.
For example 15% for Home accessories, 20% for textile, and 65% of the total deposit for the automotive sector.

B-There must be Sectoral Concentration:
The bank should distribute the loans to be given according to a certain percentage according to the loan types.
For example, 10% of the loans to be given by the bank as housing loans, 5% as education loans, 25% as commercial building loans,
It should be able to plan to give 5% of the loan to companies in the automotive sector.

C- The income sources of the bank should be diversified.
Currently, the bank only has income from interest.
example of income of the bank: interest income, income from banking transactions: EFT, account management fee etc...

D-Following the equivalence of the maturity of the deposits collected by the bank and the maturity of the loans to be given as a performance indicator.
For example,Does the bank use the deposit that has been collected with 1-year maturity to give a 1-year matured loan?
Or does it uses the deposit that has been collected with 1-year maturity to give a 3-year matured loan?
That's a significant issue

it would be nice if all those suggestions could be implemented, definitely it will feel more realistic

[mdemircan2]

david,
please hear our voice

[buells]

I think the question is, how will it impact the player's strategic decisionmaking? Right now I think it is assumed all of that is going on beneath the surface, but changing the allocations has to have some impact on the gameplay. You can already adjust between risk levels. In real life, different banks might specialize in different types of lending, developing branding, expertise, and products that give them a competitive edge. Without adding a lot of granular detail to the gameplay, I don't think adding a bunch of sliders that basically just entail different levels of risk and reward (which you can already adjust for) is going to make the game better.

The point about liquidity matching is well taken, though. Right now it seems like there is too little downside to a bank taking on a lot of (nominal, in the context of the game) liquidity risk and credit risk for that matter.